This afternoon President Obama traveled to Nashua New Hampshire to tour a small energy-efficient lighting manufacturer and outline his proposal to promote lending to small businesses. The President plans to use $30 million of repaid TARP dollars to fund this project.
The proposal plans to provide additional lending to small businesses by providing the repaid TARP funds to small community banks, which the administration hopes will in turn lend to community small business owners and entrepreneurs. The proposal will need to be approved by Congress before it is implemented, and already some lawmakers are complaining that TARP funds are to be used to pay down the federal deficit, not payed back out to community banks.
President Obama emphasized the fact that small businesses have and will continue to be the driver for job growth in America for the middle class, and he hope that this plan will reduce the current high unemployment rates experienced by the average American.
The TARP Stigma
Some community banks have shown reluctance to accept any money associated with TARP, saying that taking money from the government will lump them with the larger Wall Street banks that are so unpopular right now, and with the unpopular bailout in general.
The president’s Town Hall style speech follows his YouTube event earlier this week and is a continuation of the administrations attempt to speak to the American people directly.